U.S. dollar declined on Friday and is on pace to lose ground for the week on the ambiguity of the pace of the Federal Reserve's upcoming policy regarding the interest rate hike.

The Dollar Index which gauges the dollar versus its major pairs, slumped by 0.2% at104.782, retreating from the highest touched level 105.36 witnessed at the beginning of the week.

The index is gearing towards dipping by 0.4% this week, which could mark the first declined week since the kick of 2023.

EUR/USD edged up by 0.2% to 1.0617, jumping from the lowest level hit in couple of months at 1.0533.

GBP/USD grew by 0.3% to 1.1980, lingering lower than 1.20 as speculation grows that the Bank of England may suspend its tightening cycle before its major counterparts due to the sluggish U.K. economy.

USD/JPY dropped by 0.2% to 136.47, with the yen helped by shored up by retreat in the U.S. yields.